Can we save the Internal market ?

Long awaited recommendations of professor Monti regarding the relaunch of the Internal Market were handed to the president of the European Commission José Manuel Barroso on 9 May. More than innovative strategy the 107-page report requested by Barroso, looks like a cookbook for the EC president when searching for better compromises convenient for EU institutions, the Member States and the civil society.

25 years after the issue of the White paper on the Internal Market, Monti points out the fact that there is not any complete Internal Market yet. Moreover, there are more participants and challenges today. In reaction to the Monti´s report, the European Parliament recommended the EC to adopt a Single Market Act by May 2011 at the latest and set up priorities for a highly competitive social market and a green economy.

As for Barroso himself, he informed that the EC would come up with its own recommendations in June, later postponed to the period after the summer holiday. In the taxation area, Monti draws attention to the high fragmented Internal Market with 27 different fiscal systems obviously creating barriers to the cross-border trade. Businesses, as well as consumers, need an assurance. Double taxation and fiscal discrimination deepen this problem.

Czech businesses want the taxation more effective, simplified and coordinated, though not harmonized. In the light of digital revolution, the public administration should use e-tools omitted in the report. Therefore, the EU needs more innovation in public but also private sector. The Innovation act, expected to be published in autumn, should enhance the cooperation between universities, businesses and researchers. Simple support tools such as innovation vouchers should be used to boost up the innovation. Communitary patent, also mentioned by Monti, is fully supported by Czech business.

As for the consumer issue, Czech business opposes Monti´s proposal for collective redress.